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Estimating the HOV Model with Technology Differences Using Disaggregated Labor Skills for the United States and the United Kingdom

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  • Maskus, Keith E
  • Webster, Allan

Abstract

The paper develops a version of the Heckscher-Ohlin-Vanek (HOV) theorem of parametric technological differences for application to US and UK data on the factor contents of trade, output, and consumption. A matched set of input-output tables, consumption and trade vectors, and labor occupations is constructed. The data allow estimation of factor-specific and industry-specific productivity differences for incorporation into a second-stage econometric approach to assessing the HOV model. The data support a general model with technical differences and measurement error. The implied ratio of US-to-UK expenditure levels exceeds the ratio based on published GNP data. Copyright 1999 by Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 7 (1999)
Issue (Month): 1 (February)
Pages: 8-19

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Handle: RePEc:bla:reviec:v:7:y:1999:i:1:p:8-19

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576

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Cited by:
  1. Carlos A. Cinquetti, 2007. "Technology Service And Factor Intensity: The Export Impact From Multinationals," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 056, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  2. Hanson, Gordon H. & Slaughter, Matthew J., 2002. "Labor-market adjustment in open economies: Evidence from US states," Journal of International Economics, Elsevier, vol. 57(1), pages 3-29, June.
  3. Gordon H. Hanson & Matthew J. Slaughter, 1999. "The Rybczynski Theorem, Factor-Price Equalization, and Immigration: Evidence from U.S. States," NBER Working Papers 7074, National Bureau of Economic Research, Inc.
  4. Dudley, Leonard & Moenius, Johannes, 2007. "The great realignment: How factor-biased innovation reshaped comparative advantage in the U.S. and Japan, 1970-1992," Japan and the World Economy, Elsevier, vol. 19(1), pages 112-132, January.

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